This requires deep thought about any issue that is important to you and asks you to make a judgment on whether the 80/20 Principle is working in that area. A new and complementary way to use the 80/20 Principle is what I call 80/20 Thinking.80/20 wisdom is to choose a basket carefully, load all your eggs into it, and then watch it like a hawk. Conventional wisdom is not to put all your eggs in one basket.My application of the 80/20 Principle suggests the reverse: that we are actually awash with time and profligate in its abuse. The common view is that we are short of time.A few things are important most are not.And since the behavior of epidemics is nonlinear and they don’t behave in the way we expect, “small changes-like bringing new infections down to thirty thousand from forty thousand-can have huge effects…It all depends when and how the changes are made.” The tipping point is “the point at which an ordinary and stable phenomenon-a low-level flu outbreak-can turn into a public-health crisis,”10 because of the number of people who are infected and can therefore infect others. The concept comes from the principles of epidemic theory. This invisible line is the tipping point. But if the new force persists and can cross a certain invisible line, a small amount of additional effort can reap huge returns. A great deal of effort generates little by way of results. Up to a certain point, a new force-whether it is a new product, a disease, a new rock group, or a new social habit such as jogging or roller blading-finds it difficult to make headway. Related to the idea of feedback loops is the concept of the tipping point.The 80/20 Principle also asserts that when we know the true relationship, we are likely to be surprised at how unbalanced it is. However, the two numbers in the comparison don’t have to add up to 100. The 80/20 Principle asserts that when two sets of data, relating to causes and results, can be examined and analyzed, the most likely result is that there will be a pattern of imbalance. this “50/50 fallacy” is one of the most inaccurate and harmful, as well as the most deeply rooted, of our mental maps. That every bit of business, every product, and every dollar of sales revenue is as good as any other. We tend to expect that all causes will have roughly the same significance. The reason that the 80/20 Principle is so valuable is that it is counterintuitive.The company immediately rewrote its operating software to make the most-used 20 percent very accessible and user friendly, thus making IBM computers more efficient and faster than competitors’ machines for the majority of applications. In 1963, IBM discovered that about 80 percent of a computer’s time is spent executing about 20 percent of the operating code.Zipf’s principle said that resources (people, goods, time, skills, or anything else that is productive) tended to arrange themselves so as to minimize work, so that approximately 20–30 percent of any resource accounted for 70–80 percent of the activity related to that resource. In 1949 Zipf discovered the “Principle of Least Effort,” which was actually a rediscovery and elaboration of Pareto’s principle.Truly effective people and organizations batten on to the few powerful forces at work in their worlds and turn them to their advantage.
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